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Home My WebLink AboutCO 6939 0 Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase.. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. 0-C) c.'R3 Order File Identifier Organizing (done) RESCAN ❑ Color Items: ❑ Greyscale Items: ❑ Poor Quality Originals: ❑ Other: NOTES: Two-sided iiiuimuiiium DIGITAL DATA ❑ Diskettes, No. ❑ Other, No/Type: ❑ Rescan Needed IIIIIIIIIIIIIIIIIII OVERSIZED (Scannable) ❑ Maps: ❑ Other Items Scannable by a Large Scanner OVERSIZED (Non -Scannable) ❑ Logs of various kinds: ❑ Other:: BY: Angela ✓ Date: -:6' - VL - Z c,/s/ COSG! ct Proofing III IIIIIIIIIII IIIII Probe g / BY: Angela Date: `6 • \ Z ' 1 c� \'-(` /s/ Scanning Preparation x 30 = + = TOTAL PAGES t"Lr=, (Count does not include cover sheet) BY: Angela '� Date: - \1" - L o \ `-k /s/ CA-i�<- Production Scanning Stage 1 Page Count from Scanned File: 44, la (Count does include cover sheet) Page Count Matches Number in Scanning Preparation: ✓ YES NO BY: Angela '� Date: /s/ CA�-<' Stage 1 If NO in stage 1, page(s) discrepancies were found: YES NO BY: Angela Date: /s/ oint unless rescannin 111111111111111111 Scanning is complete at this p 9 is required. ReSc anned III IIIIIIIIIII IIIII BY: Angela Date: /s/ Commen ts about this file: Quality Checked III (IIIII III (III III INDEX CONSERVATION ORDER NO. 693 Granite Point Field Middle Kenai Oil Pool Undefined Hemlock Oil Pool Kenai Peninsula Borough, Alaska 1. June 17, 2014 Hilcorp's request for approval to commingling oil production from the Granite Point Field, Middle Kenai Oil, and Hemlock Undefined Oil Pools in the Granite Point State 11-13RD well (Figures 1-10 held confidential in secure storage) 2. June 17, 2014 Notice of Public Hearing, Affidavit of Publication, and email and mailing distribution lists 3.-------------------- Emails between Hilcorp and AOGCC re: Commingling Application INDEX CONSERVATION ORDER NO. 693 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, LLC for a waiver of the requirement to provide complete separation of flow streams from separate pools as specified in 20 AAC 25.210 and authorization under 20 AAC 25.215(b) for downhole commingling of production in the Granite Pt St 11-13RD (PTD 191-133). IT APPEARING THAT: Docket Number: CO-14-019 Conservation Order No. 693 Granite Point Field Middle Kenai Oil Pool Undefined Hemlock Oil Pool Kenai Peninsula Borough, Alaska August 8, 2014 1. By letter dated June 17, 2014, Hilcorp Alaska, LLC (Hilcorp) requested a waiver of the requirement to provide complete separation of flow streams from different pools as specified in 20 AAC 25.210 for the Granite Pt St 11-13RD (GP 11-13RD) (PTD 191- 133) well and authorization under 20 AAC 25.215(b) for downhole commingling of production from the Middle Kenai Oil Pool (Middle Kenai) and the Undefined Hemlock Oil Pool (Hemlock) in the GP 11-13RD well. 2. Pursuant to 20 AAC 25.540, the Alaska Oil and Gas Conservation Commission (AOGCC) tentatively scheduled a public hearing for July 29, 2014. On June 17, 2014, the AOGCC published notice of the opportunity for that hearing on the State of Alaska's Online Public Notice website and on the AOGCC's website, electronically transmitted the notice to all persons on the AOGCC's email distribution list, and mailed printed copies of the notice to all persons on the AOGCC's mailing distribution list. On June 18, 2014, the AOGCC published the notice in the ANCHORAGE DAILY NEWS. 3. No protest to the application or request for hearing was received. 4. Because Hilcorp provided sufficient information upon which to make an informed decision, the request can be resolved without a hearing. 5. The tentatively scheduled hearing was vacated on July 17, 2014. FINDINGS: 1. Hilcorp is the operator of the Granite Point Field and the GP 11-13RD well, located offshore on the Granite Point platform in the Cook Inlet, Kenai Peninsula Borough, Alaska. 2. The GP 11-13RD well is a deviated development well with an offshore surface location 2,384 feet from the north line and 1,368 feet from the west line of Section 13, Township 10 North, Range 12 West, Seward Meridian (S.M.). The bottom -hole location is approximately 1,140 feet from the north line and 1,329 feet from the west line of Section 13, Township 10 North, Range 12 West, S.M. Conservation Order No. 693 August 8, 2014 Page 2 of 4 3. The surface and bottomhole location of the GP 11-13RD well lies within State of Alaska lease ADL 0018761. 4. The primary reservoir for the Granite Point Field is the Middle Kenai as defined by the Mobil Granite Point No. 1 well between 7,725 and 10,800 feet measured depth (MD). The Middle Kenai has produced nearly 150 MMBO, 41 to 44 degree API since 1967. The pool averages 250 feet of net pay with an average porosity of 14 percent and an average permeability of 10 millidarcies (md). Original reservoir pressure was reported as 4251 psi. 5. The Hemlock has produced from only a couple of wells field -wide. The reservoir underlies the Middle Kenai at a depth of 11,565 feet MD in the Mobil Granite Point No. 1 well. Reservoir properties were initially reported as 120 feet of net pay with porosities averaging 11 percent and an average permeability of 5 md. Oil gravity is 34 degree API. 6. GP 11-13RD has produced from the Hemlock since March 1992. Production initially exceeded 1,100 barrels of oil per day (BOPD) but has declined steadily, dropping to approximately 500 BOPD within the first year, and the current production rate is approximately 40 BOPD with a water cut of 60-65 percent. Cumulative production from GP 11-13RD is a little over 1 million barrels of oil (MMBO). Remaining reserves in the Hemlock that can be recovered from GP 11-13RD are estimated to be 164 thousand barrels of oil (MBO). 7. The Middle Kenai has not been produced by the GP 11-13RD. Based on offset wells and well logs, recoverable Middle Kenai reserves accessible to the GP 11-13RD well are estimated to be approximately 450 MBO, with an estimated production of 80-100 BOPD. 8. The operator reports that the initial reservoir pressure of the Hemlock was approximately 6,000 psi and the current pressure is approximately 5,300 psi. 9. The operator reports that the current reservoir pressure of the Middle Kenai ranges from approximately 1,800 psi to approximately 2,500 psi depending on the particular sand. 10. Although initial production indicated much higher permeabilities, the operator reports that recent pressure build up tests indicate the Hemlock is very tight with a permeability of approximately 0.01 and or less. 11. Based on the initial and current pressure and the initial production rate, the GP 11-13RD should be producing at a much higher oil rate than it currently is. One possible explanation for how an oil well completed in rock with such low permeability could initially produce in excess of 1,000 BOPD from an unstimulated well would be the presence of a dual porosity system. Another possibility is the presence of migrating fines and/or swelling clays that are choking off the pore throats in the rock. 12. A fracture stimulation was conducted on the GP 11-13RD in December 2013. AOGCC production data shows that pre-frack the well produced about 20 BOPD and post-frack this increased to approximately 80 BOPD. This increase was short lived as the well has dropped back to near pre-frack flow levels already. 13. Reservoir properties in the Middle Kenai generally degrade with depth. In the upper portions permeability can be as high as 10 MD. The operator reports that in the lower portions where they plan to complete the GP 11-13RD well, the permeability will be approximately 0.1-0.2 md. Conservation Order No. 693 August 8, 2014 Page 3 of 4 14. Production logs can be run on a regular basis to allocate production between the Hemlock and Middle Kenai. Initially, the production logs will be compared to well testing results to verify the log's accuracy. 15. If production logging proves unacceptable, production can be allocated based on the known decline rate in the Hemlock. CONCLUSIONS: 1. A waiver to 20 AAC 25.210 is not required because authorization to commingle production in the wellbore would supersede the requirement that production from different zones be isolated in a well. 2. It is not known why the Hemlock is not producing (based on anticipations given the initial production rate and the current reservoir pressure) at a much higher rate than it currently is. However, the operator has taken prudent steps to try to improve the production rate to no avail. The Hemlock in the GP 11-13RD is very near its economic limit and if commingling is not authorized will be abandoned so that the Middle Kenai can be produced. Allowing commingled production will allow some of the remaining 164 MBO of reserves in the Hemlock to be recovered. 3. Despite the large difference in pressure between the Hemlock and Middle Kenai, crossflow between the two during production would not occur due to the large drawdown that will be necessary to produce these two tight formations. Similarly, crossflow, when the well is shut in, will be very slow due to the tight formations. 4. Allocating production based on production logging will provide acceptable production allocation between the two zones. If production logging does not show itself to be accurate, production allocation based on the known decline in the Hemlock will also provide acceptable results. NOW THEREFORE IT IS ORDERED: Pursuant to AS 31.05.030 and 20 AAC 25.215(b), the downhole commingling of production between the Hemlock, and Middle Kenai in the GP 11-13RD well is hereby approved with the following conditions: 1. A production log must be run within 30 days, of when the well has stabilized, for the commencement of commingled production. 2. If the production logging compares favorably with the pre and post commingling well tests, the operator shall conduct periodic production logging, with no more than 24 months between tests, and adjust the allocation of production between the Hemlock and Middle Kenai. 3. If the production logging does not compare favorably to the well tests, production shall be allocated to the Hemlock based on its historical decline rate and it shall be assumed that all water produced from the well is coming from the Hemlock. Production shall be allocated to the Middle Kenai based on the oil rate during routine well testing minus the volume of oil allocated to the Hemlock. 4. Copies of all tests and logs used for determining allocation of production shall be submitted to the AOGCC within 30 days. Conservation Order No. 693 August 8, 2014 Page 4 of 4 Unless notice and public hearing are otherwise required, upon proper application the AOGCC may administratively amend this order as long as the change does not promote waste or jeopardize correlative rights, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. DONE at Anchorage, Alaska and dated August 8, 2014. SOIL v '+r Daniel T. Seamount, Jr. Z6avTd May Commissioner Commissioner o RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10-days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 n.m. on the next day that does not fall on a weekend or state holiday. Singh, Angela K (DOA) From: Carlisle, Samantha J (DOA) Sent: Friday, August 08, 2014 12:33 PM To: Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Jackson, Jasper C (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Mayberry, David (DOA sponsored); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); (michael j.nelson@conocophillips.com); AKDCWellIntegrityCoordinator, Alexander Bridge; Andrew VanderJack, Anna Raff; Barbara F Fullmer; bbritch; bbohrer@ap.org; Barron, William C (DNR); Bill Penrose, Bill Walker; Bob Shavelson; Brian Havelock; Burdick, John D (DNR); Cliff Posey; Colleen Miller; Corey Cruse; Crandall, Krissell; D Lawrence; Daryl J. Kleppin; Dave Harbour, Dave Matthews; David Boelens; David Duffy; David Goade; David House; David McCaleb; David Scott; David Steingreaber; David Tetta; Davide Simeone; ddonkel@cfl.rr.com; Dean Gallegos; Delbridge, Rena E (LAA); Donna Ambruz; Dowdy, Alicia G (DNR); Dudley Platt; Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer, Frank Molli; Gary Schultz (gary.schultz@alaska.gov); George Pollock; ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington Oarlington@gmail.com); Jeanne McPherren; Jerry Hodgden; Jerry McCutcheon; Jim White; Joe Lastufka; news@radiokenai.com; John Adams; Easton, John R (DNR); John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett, Judy Stanek; Houle, Julie (DNR); Julie Little; Kari Moriarty; Keith Wiles; Kelly Sperback; Klippmann; Gregersen, Laura S (DNR); Leslie Smith; Lisa Parker, Louisiana Cutler; Luke Keller, Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark P. Worcester; Mark Wedman; Kremer, Marguerite C (DNR); Michael Jacobs; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schultz; Mindy Lewis; MJ Loveland; mjnelson; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nichole Saunders; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Oliver Sternicki; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sandra Haggard; Sara Leverette; Scott Griffith; Shannon Donnelly; Sharmaine Copeland; Sharon Yarawsky, Shellenbaum, Diane P (DNR); Slemons, Jonne D (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Steve Kiorpes; Moothart, Steve R (DNR); Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler; Tim Mayers; Tina Grovier; Todd Durkee; Tony Hopfinger; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; yjrosen@ak.net, Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; Diane Richmond; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr, Smith, Graham O (PCO); Greg Mattson; Hans Schlegel; Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck; Josh Kindred; Kenneth Luckey; King, Kathleen 1 (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Peter Contreras; Richard Garrard; Richard Nehring; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Terence Dalton; Todd, To: Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster; Wendy Wollf, William Hutto; William Van Dyke Subject: Conservation Order 693 (Granite Point Field) Attachments: co693.pdf Please see attached. Samantha Carlisle Executive Secretary II Alaska Oil and Gas Conservation Commission 333 West 7ch Avenue, Suite 100 Anchorage, AK 99501 (907) 793-1223 (phone) (907) 276-7542 (fax) CONFIDENTIALITY NOTICE. This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Samantha Carlisle at (907) 793-1223 or Samantha.Carlisle@alaska.gov. CIRI James Gibbs Jack Hakkila Land Department Post Office Box 1597 Post Office Box 190083 Post Office Box 93330 Soldotna, AK 99669 Anchorage, AK 99519 Anchorage, AK 99503 Bernie Karl K&K Recycling Gordon Severson Penny Vadla Post Office Box Inc.c. 3201 Westmar Cir. 399 W. Riverview Ave. Fairbanks, AK 99711 Anchorage, AK 99508-4336 Soldotna, AK 99669-7714 George Vaught, Jr. Richard Wagner Darwin Waldsmith Post Office Box 13557 Post Office Box 60868 Post Office Box 39309 Denver, CO 80201-3557 Fairbanks, AK 99706 Ninilchik, AK 99639 Judy Stanek Landman Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste.1400 Anchorage, AK 99503 Angela K. Singh #3 Roby, David S (DOA) From: Judy Stanek <jstanek@hilcorp.com> Sent: Wednesday, July 23, 2014 4:45 PM To: Roby, David S (DOA) Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Attachments: Fig 2 GP 11-13RD Schematic Proposed.pdf, Fig 6 Tyonek and Hemlock Maps and Logs 4.pdf; Fig 7 Granite Point Field Historical Middle Kenai Prodction.pdf; Fig 8 Granite Point Field Historical Hemlock Production.pdf; Fig 1 GP 11-13RD Schematic Current.pdf, Page 4 GP-11-13RD Commingling Application.pdf Dave, Attached are Figures 1, 2, 6, 7 and 8 which do not need to be confidential. These exhibits can be substituted for the ones submitted as confidential. I also attached a new page 4 if you need that removing the word Confidential out of the title. Please let me know if you need anything else. Thanks, Judy Judy Stanek, CPL Landman Hilcorp Alaska LLC Ph: 907.777.8341 From: Roby, David S (DOA) (mailto:dave.roby@alaska.gov] Sent: Wednesday, July 23, 2014 11:02 AM To: Judy Stanek Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Judy, I'm working on drafting the order for this application and I noticed that there are several attachments to your application that were stamped confidential but are not actually confidential because they are either already in the public domain or by statute/regulation can't be considered confidential. For example, the existing wellbore diagram shown as figure 1 is the same one that was submitted with the 10-404 when the well was fracked this past winter and thus is already in the public domain and the production data shown in figures 8 & 9 aren't confidential because under 20 AAC 25.537(a) production data is never considered confidential. Please review all the attachments to determine whether they are truly confidential or not and resubmit the ones that aren't without a claim to confidentiality on them. Thank you, Dave Roby (907) 793-1.232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Dave Roby at (907)793-1232 or dave.robydalaska.aov. From: Judy Stanek (mailto:Jstanek@)hilcorp.com] Sent: Tuesday, June 17, 2014 3:16 PM To: Roby, David S (DOA) Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Dave, Thanks for the information regarding the regulations. I will get you the information regarding the pressure. Judy Judy Stanek, CPL Landman Hilcorp Alaska LLC Ph: 907.777.8341 From: Roby, David S (DOA) [maiIto: dave.roby alaska.gov] Sent: Tuesday, June 17, 2014 3:02 PM To: Judy Stanek; Colombie, Jody J (DOA); Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Judy, A couple of things. First, for future reference you don't need a waiver of 25.210 when you apply for downhole commingling. 25.210 applies to wells completed with multiple tubing strings and not to wells being downhole commingled in a single tubing string. Second, You have an estimated pressure for the Hemlock but I didn't see one for the Middle Kenai. Could you please let me know what the Middle Kenai pressure is, and also address whether there's any possibility of crossflow between the Hemlock and Middle Kenai. Thanks in advance. Regards, Dave Roby (907) 793-1232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Dave Roby at (907) 793-1232 or dave.roby4alaska.aov. From: Judy Stanek [mailto:Jstanek(d)hilcorp.com] Sent: Tuesday, June 17, 2014 8:29 AM To: Colombie, Jody J (DOA); Schwartz, Guy L (DOA); Roby, David S (DOA); Davies, Stephen F (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Thanks Jody, Let's try this again. Judy Judy Stanek, CPL Landman Hilcorp Alaska LLC Ph: 907.777.8341 From: Colombie, Jody J (DOA)(mailto:jody.colombie@alaska.gov) Sent: Tuesday, June 17, 2014 8:24 AM To: Judy Stanek; Schwartz, Guy L (DOA); Roby, David S (DOA); Davies, Stephen F (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well No attachment From: Judy Stanek (mailto:jstanek(a)hilcorp.com) Sent: Tuesday, June 17, 2014 8:19 AM To: Schwartz, Guy L (DOA); Roby, David S (DOA); Davies, Stephen F (DOA); Colombie, Jody J (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: Application to Commingle in the Granite Pt St 11-13RD Well Guy, Dave, Steve, and Jody, Please find the attached application to commingle the Granite Point Field, Middle Kenai Oil and Hemlock Undefined Oil Pools in the Granite Point St 11-13RD well. This application was mailed today to Cathy Foerster, Chair of the Commission, today. Please let me know if you need additional information or have questions. Thanks, Judy Judy Stanek, CPL Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Ph: 907.777.8341 jstanek@hilcorp.com Ms Cathy Foerster Alaska Oil and Gas Conservation Commission Granite Pt St 11-13RD Commingling Application June 17, 2014 Page 4 of 4 Attachments: 1. Well diagram (existing) 2. Well diagram (proposed) 3. Structure map of Middle Kenai Oil Pool 4. Structure map of Hemlock Undefined Pool 5. Overlay structure map of Middle Kenai Oil Pool and Hemlock Undefined Pool 6. Log of wells GP-11-13RD and GP-50 showing Middle Kenai and Hemlock 7. Historical Production Middle Kenai Oil Pool (Oil — Exponential Decline) 8. Historical Production Hemlock Undefined Pool (Oil — Exponential Decline) 9. Performance curve for GP-11-13RD 10. Decline Curve for GP-11-13RD Granite Point Platform Well #: GP 11-13RD Figure 1. Well Diagram (Existing) Last Completed: 12/18/2013 11 PTD: 191-133 API: 50-733-20026-01 RKB to Hanger = 425 13-3Ar TD=11.560R 12 13 14 15 16 Exp-Liner 17 10,978'to 11.45V Ir' 18 PBTD a 11,451R CASING DETAIL Size (in) WT (Ib/ft) Grade Conn ID (in) Top (ft) Btm (ft) 18 Conductor Surf 684 13-3/8 61.0 1-55 12.515 Surf 4,018 9-5/8 47 N-80 8.681 Surf 6,773 9-5/8 53.5 P-110 8.535 6,773 10,060 7 32 P-110 6.094 9,787 11,560 5.919 32 Exp, Liner GII 5.271 10,978 11,451 TUBING DETAIL 3-1/2 9.3 L-80 I RTS-8 2.992 Surf 10,932 IFWELRY No Depth (ft) ID Item 1 326 2.813 SCSSV X-Profile Back Up 2 2,304 2.992 GLM 3 4,164 2.992 GLM 4 5,686 2.992 GLM 5 6,856 2.992 GLM 6 7,715 2.992 GLM 7 8,324 2.992 GLM 8 8,811 2.992 GLM 9 9,327 2.992 GLM 10 9,841 2.992 GLM 11 10,355 2.992 GLM 12 10,839 2.992 GLM 13 10,854 2.813 GXA Sliding Sleeve Non-Elastomeric (opens up / B shifting Tool) 14 10,867 2.992 Chemical Injection Sub 15 10,883 2.992 Hyd Retr Packer, 7" 26-32#, 40K Shear 16 10,925 2.813 EUE X Nipple 17 10,932 2.992 WLRe-Entry Guide PrRrORATI(1NC Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Amt I SPF Date 11,032' 11,220' 10,904' 11,083' 188' 8 3/12/1992 11,032' 11,102' 10,904' 10,970' 70' 6 2/12/2011 Hemlock 11,245' 11,377' 11,106' 11,232' 132' 8 3/12/1992 11,205 11,215 11,068 11,077' 120' 12 11/16/2013 11,205 11,215 11,068 11,077' 60' 6 11/27/2013 Updated by 1LL 01/17/14 Figure 2 Granite Point Platform PROPOSED Well#: GP11-13RD Last Completed: 12/18/2013 u�a- n�t<,. taa: PTD: 191-133 API: 50-733-20026-01 RKR to Hangar = 425 1 2 18' 3 4 5 6 7 8 10 11 9 Lip-Lrer 10,976• to 11,451' TD=11,560R PBTD 0 11,45111 CASING DETAIL Size (in) WT (Ib/ft) Grade Conn ID (in) Top (ft) Btm (ft) 18 Conductor Surf 684 13-3/8 61.0 J-S5 12.S15 Surf 4,018 9-5/8 47 N-80 8.681 Surf 6,773 9-5/8 53.5 P-110 8.535 6,773 10,060 7 32 P-110 6.094 1 9,787 11,560 5.919 32 Exp. Liner Gill 5.271 1 10,978 11,451 TUBING DETAIL 3-1/2 L-80 I q�c k- IFWFI RY No Depth (ft) ID Item 1 326 2.813 SCSSV X-Profile Back Up 2 ±2,304 2.992 GLM 3 ±4,164 2.992 GLM 4 1 ±5,686 2.992 1 GLM 5 ±6,856 2.992 GLM 6 ±7,71S 2.992 GLM 7 ±8,324 2.992 GLM 8 ±8,394' 2.813 Sliding Sleeve Non-Elastomeric (opens up / B shifting Tool) 9 ±8,404' 2.992 Packer 10 ±8,446' 2.813 X Nipple 11 2.992 1 WLRe-Entry Guide Pprforation Details Zone Top(MD) Btm(MD) Top(TVD Btm(TVD Amt SPF Date t8,SS3' ±8,58S' 4-8,471' ±8,503' ±32' Future ±8,648' ±8,685' ±8,S65' ±8,602' ±37' Future ±8,721' ±8,738' ±8,637' ±8,654' ±17' Future ±8,877' ±8,901' ±8,792' ±8,816' ±24' Future ±8,919' ±8,997' ±8,833' ±8,911' ±78' Future ±9,013' ±9,040' ±8,926' ±8,9S3' ±27' Future ±9,306' ±9,331' ±9,216' ±9,241' ±2S' Future ±9,439' ±9,466' ±9,348' ±9,374' ±27' Future ±9,475' ±9,485' ±9,383' ±9,393' ±10' Future ±9,578' ±9,S91' ±9,485' ±9,498' +13' Future ±9,610' ±9,63S' ±9,S16' ±9,S41' ±2S' Future lyonek +9 711' ±9,720' ±9,616' ±9,625' ±9' Future ±9,744' ±9,756' ±9,649' ±9,661' ±12' Future ±9,786' ±9,797' ±9,690' ±9,701' ±11' Future ±9,836' ±9,8S5' ±9,740' t9,758' ±19' Future ±9,94S' ±9,989' ±9,847' =9,891' ±44' Future ±10,188' ±10,195' ±10,088' ±10,095' ±7' Future ±10,211' ±10,228' ±10,111' ±10,128' ±17' Future ±10,319' ±10,327' ±10,218' ±10,226'r70' Future ±10,626' ±10,655' ±10,517' ±10,545' Future +10,732' ±10,750' ±10,619' ±10,636' Future ±10,802' ±10,807' ±10,686' ±10,690' Future 11,032' 11,220' 10,904' 11,083' 8 3/12/1992 11,032' 11,102' 10,904' 10,970' 6 2/12/2011 Hemlock 11,245' 11,377' 11,106' 11,232' 8 3/12/1992 11,20S 11215 11,068 11,077' 12 11/16/2013 11,205 11,215 11,068 11,077' 6 11/27/2013 Updated by JLL 06/16/14 m W ( (4 r V ' w L (Q L L 41 Q� ) Q L QL CL 0 c a) 0 ;_• W o 0 w cr Ln 0 GOR (scf/bbi) r h w m V M N h t0 10 a M N r Op Water Inj Rate (stb/d) h W M N h U3 M N h w a9 N r' .D Q h m o p N O cn Q1 cn r LO � C O. O C7Z3Ci Jill lie dp IF- (p/qls) a;ea jafeM d0 (p/q;s) a;e21 IIO d0 GOR (scf/bbl) OD 0 p CD N m 10 V H. t0 IO M N a a a N N r� ti O N ti N N N C d S Z S Y C) O w Z O uj a= w z 1111111 Bill mill � iIN yRam O C W M N to m N !O M N ID r r N (p/gls) aleb ja)eM d0 (p/q)s) alert 1!O d0 Colombie, Jody J (DOA) From: Roby, David S (DOA) Sent: Tuesday, June 17, 2014 3:39 PM To: Reid Edwards; Judy Stanek; Colombie, Jody J (DOA); Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Reid, This discussion satisfies my concerns. I may have more questions in the future, but not at the moment. Regards, Dave Roby (907)793-1232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Dave Roby at (907)793-1232 or dave.roby@alaska.gov. From: Reid Edwards [mailto:reedwards@hilcorp.com] Sent: Tuesday, June 17, 2014 3:37 PM To: Roby, David S (DOA); Judy Stanek; Colombie, Jody J (DOA); Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Dave, The Middle Kenai pressure is expected to range between 1800 and 2500 psi. there are several sands within that pool and each at a different pressure so cannot give an exact pressure but most will fall within that range. I do not see any chance of crossflow while the well is on production as the drawdown pressure will be—800-1000 psi at the Middle Kenai perfs. If the well is shut in for an extended period of time there could be very slight crossflow from the Hemlock to the Middle Kenai sands but I do not expect it to be much as the Hemlock is very tight (0.01md) and the Middle Kenai is — 0.1- 0.2 md. Please let me know if you want to discuss further. Thanks Reid Edwards — Reservoir Engineer Hilcorp Alaska LLC Office: 907-777-8421 Cell: 907-250-5081 From: Roby, David S (DOA) [mailto:dave.roby@alaska.gov] Sent: Tuesday, June 17, 2014 3:02 PM To: Judy Stanek; Colombie, Jody J (DOA); Schwartz, Guy L (DOA); Davies, Stephen F (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Judy, A couple of things. First, for future reference you don't need a waiver of 25.210 when you apply for downhole commingling. 25.210 applies to wells completed with multiple tubing strings and not to wells being downhole commingled in a single tubing string. Second, You have an estimated pressure for the Hemlock but I didn't see one for the Middle Kenai. Could you please let me know what the Middle Kenai pressure is, and also address whether there's any possibility of crossflow between the Hemlock and Middle Kenai. Thanks in advance. Regards, Dave Roby (907) 793-1232 CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Dave Roby at (907)793-1 M or dave.roby@alaska.aov. From: Judy Stanek [mailtoJstanek@hilcorp.com] Sent: Tuesday, June 17, 2014 8:29 AM To: Colombie, Jody J (DOA); Schwartz, Guy L (DOA); Roby, David S (DOA); Davies, Stephen F (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well Thanks Jody, Let's try this again. Judy Judy Stanek, CPL Landman Hilcorp Alaska LLC Ph: 907.777.8341 From: Colombie, Jody J (DOA) [ma iIto: jody.colombie@alaska.gov] Sent: Tuesday, June 17, 2014 8:24 AM To: Judy Stanek; Schwartz, Guy L (DOA); Roby, David S (DOA); Davies, Stephen F (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: RE: Application to Commingle in the Granite Pt St 11-13RD Well No attachment N From: Judy Stanek [mailto jstanek(alhilcorp.com] Sent: Tuesday, June 17, 2014 8:19 AM To: Schwartz, Guy L (DOA); Roby, David S (DOA); Davies, Stephen F (DOA); Colombie, Jody J (DOA) Cc: Reid Edwards; Jacob Dunston; David Duffy Subject: Application to Commingle in the Granite Pt St 11-13RD Well Guy, Dave, Steve, and Jody, Please find the attached application to commingle the Granite Point Field, Middle Kenai Oil and Hemlock Undefined Oil Pools in the Granite Point St 11-13RD well. This application was mailed today to Cathy Foerster, Chair of the Commission, today. Please let me know if you need additional information or have questions. Thanks, Judy Judy Stanek, CPL Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Ph: 907.777.8341 0stanek@hilcorp.com 3 #2 Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket No. CO-14-019. The application of Hilcorp Alaska, LLC. (Hilcorp) for an exception to the commingling requirements of 20 AAC 25.215(b). Hilcorp by letter received June 17, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order authorizing commingling under 20 AAC 25.215(b) to allow commingling of production within the same wellbore from the Granite Point Field, Middle Kenai Oil and Hemlock Undefined Oil Pools in the Granite Point State 11-13RD well. The AOGCC has tentatively scheduled a public hearing on this application for July 29, 2014 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7`h Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on July 8, 2014. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call 793-1221 after July 14, 2014. In addition, written comments regarding this application may be submitted to the Alaska Oil and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on July 21, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the July 29, 2014 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than July 21, 2014. Cair, Foerster Chmmissioner STATE OF ALASKA ADVERTISING ORDER NOTICE TO PUBLISHER INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE ADVERTISING ORDER NO. /� 1 �Own AO-4 AFL SEE BOTTOM FOR.INVOIC.E ADDRESS :;. F R ° M AOGCC 333 W 7th Ave, Ste 100 Anchorage, AK 99501 AGENCY CONTACT Jody Colombie DATE OF A.O. June 17, 2014 PHONE 907 9 —1221 PCN DATES ADVERTISEMENT REQUIRED: June 18, 2014 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 g SPECIAL INSTRUCTIONS: Type of Advertisement Legal® ❑ Display Classified ❑Other (Specify) SEE ATTACHED SEND;1NVQIf; �N T P1,14"A'�'I:: AOGCC, 333 W. 7th Ave., Suite 100 Anchorage, AK 99501 PAGE of 2 PAGES TOTAL OF ALL PAGES $ REF TYPE NUMBER AMOUNT DATE COMMENTS 1 VEN 2 ARD 02910 FIN AMOUNT SY CC PGM LC ACCT FY NMR DIST LID 1 14 02140100 73451 2 REQUISITIONED B DIVISION APPROVAL: 02-902 (Rev. 3/94) U Publisher/Original Copies: Department Fiscal, Department, Receiving AOTRM 270227 0001097984 $ 219.14 AFFIDAVIT OF PUBLICATION STATE OF ALASKA THIRD JUDICIAL DISTRICT Joleesa Stepetin being first duly sworn on oath deposes and says that he is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on June 18, 2014 and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Subscribed and sworn to before me this 18th day of June, 2014 Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES RECEIVED JUN 2 3 2014 nne%e% Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: Docket No. CO-14-019. The application of Hilcorp Alaska, LLC. (Hilcorp) for an exception to the commingling requirements of 20 AAC 25.215(b). Hilcorp by letter received June 17, 2014, requests the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order authorizing commingling under 20 AAC 25.215(b) to allow commingling of production within the same wellbore from the Granite Point Field, Middle Kenai Oil and Hemlock Undefined Oil Pools in the Granite Point State 11-13RD well. The AOGCC has tentatively scheduled a public hearing on this application for July 29, 2014 at 9:00 a.m. at the Alaska Oil and Gas Conservation Commission, at 333 West 7th Avenue, Anchorage, Alaska 99501. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on July 8, 2014. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call 793-1221 after July 14, 2014. In addition, written comments regarding this application may be submitted to the Alaska oil and Gas Conservation Commission, at 333 West 7th Avenue, Suite 100, Anchorage, Alaska 99501. Comments must be received no later than 4:30 p.m. on July 21, 2014, except that, if a hearing is held, comments must be received no later than the conclusion of the July 29, 2014 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact the AOGCC's Special Assistant, Jody Colombie, at 793-1221, no later than July 21, 2014. AO-14-042 Published: June 18, 2014 Cathy P. Foerster Chair, Commissioner AT", STATE OF ALASKA NOTICE TO PUBLISHER ADVERTISING ORDER NO. ADVERTISING INVOICE MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO., CERTIFIED O�� 42 A4�Own ORDER AFFIDAVIT OF PUBLICATION (PART 2 OF THIS FORM) WITH ATTACHED COPY OF ADVERTISEMENT MUST BE SUBMITTED WITH INVOICE SEE BOTTOM.FC F IAOGCC R 333 West 71h Avenue, Suite 100 o Anchorage_ AK 99501 M o Anchorage Daily News PO Box 149001 Anchorage, AK 99514 United states of America State of AGENCY CONTACT I DATE OF A.O. PHONE PCN 907 793 -1221 DATES ADVERTISEMENT REQUIRED: June 18, 2014 THE MATERIAL BETWEEN THE DOUBLE LINES MUST BE PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account # STOF0330 AFFIDAVIT OF PUBLICATION REMINDER Ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HER vho, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2012, and thereafter for consecutive days, the last publication appearing on the day of , 2014, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This _ day of 2014, Notary public for state of My commission expires _ Singh, Angela K (DOA) From: Colombie, Jody J (DOA) Sent: Tuesday, June 17, 2014 4:41 PM To: Judy Stanek; Ballantine, Tab A (LAW); Bender, Makana K (DOA); Bettis, Patricia K (DOA); Brooks, Phoebe L (DOA); Carlisle, Samantha J (DOA); Colombie, Jody J (DOA); Crisp, John H (DOA); Davies, Stephen F (DOA); Eaton, Loraine E (DOA); Ferguson, Victoria L (DOA); Foerster, Catherine P (DOA); Frystacky, Michal (DOA); Grimaldi, Louis R (DOA); Guhl, Meredith D (DOA); Hill, Johnnie W (DOA); Hunt, Jennifer L (DOA); Jackson, Jasper C (DOA); Jones, Jeffery B (DOA); Kair, Michael N (DOA); Mumm, Joseph (DOA sponsored); Noble, Robert C (DOA); Paladijczuk, Tracie L (DOA); Pasqual, Maria (DOA); Regg, James B (DOA); Roby, David S (DOA); Scheve, Charles M (DOA); Schwartz, Guy L (DOA); Seamount, Dan T (DOA); Singh, Angela K (DOA); Wallace, Chris D (DOA); (michael j.nelson@conocophillips.com); AKDCWeIIIntegrityCoordinator, Alexander Bridge; Andrew VanderJack, Anna Raff; Barbara F Fullmer, bbritch; bbohrer@ap.org; Barron, William C (DNR); Bill Penrose; Bill Walker, Bob Shavelson; Brian Havelock; Burdick, John D (DNR); Cliff Posey, Colleen Miller, Crandall, Krissell; D Lawrence; Dave Harbour, David Boelens; David Duffy; David Goade; David House; David McCaleb; David Scott; David Steingreaber; David Tetta; Davide Simeone; ddonkel@cfl.rr.com; Donna Ambruz; Dowdy, Alicia G (DNR); Ed Jones; Elowe, Kristin; Evans, John R (LDZX); Francis S. Sommer, Frank Molli; Gary Schultz (gary.schultz@alaska.gov); George Pollock; ghammons; Gordon Pospisil; Gorney, David L.; Greg Duggin; Gregg Nady; gspfoff, Jacki Rose; Jdarlington oarlington@gmail.com); Jeanne McPherren; Jerry McCutcheon; Jim White; Joe Lastufka; news@radiokenai.com; Easton, John R (DNR); John Garing; Jon Goltz; Jones, Jeffrey L (GOV); Juanita Lovett; Houle, Julie (DNR); Julie Little; Kari Moriarty; Keith Wiles; Kelly Sperback; Kiorpes, Steve T; Klippmann; Gregersen, Laura S (DNR); Leslie Smith; Lisa Parker, Louisiana Cutler, Luke Keller; Marc Kovak; Dalton, Mark (DOT sponsored); Mark Hanley (mark.hanley@anadarko.com); Mark Wedman; Kremer, Marguerite C (DNR); Michael Jacobs; Michael Moora; Mike Bill; mike@kbbi.org; Mikel Schultz; MJ Loveland; mjnelson; mkm7200; Morones, Mark P (DNR); knelson@petroleumnews.com; Nick W. Glover, Nikki Martin; NSK Problem Well Supv; Patty Alfaro; Decker, Paul L (DNR); Paul Mazzolini; Pike, Kevin W (DNR); Randall Kanady; Randy L. Skillern; Randy Redmond; Rena Delbridge; Renan Yanish; Robert Brelsford; Ryan Tunseth; Sandra Haggard; Sara Leverette; Scott Griffith; Shannon Donnelly, Sharmaine Copeland; Sharon Yarawsky; Shellenbaum, Diane P (DNR); Slemons, Jonee D (DNR); Smart Energy Universe; Smith, Kyle S (DNR); Sondra Stewman; Stephanie Klemmer; Sternicki, Oliver R; Moothart, Steve R (DNR); Suzanne Gibson; sheffield@aoga.org; Tania Ramos; Ted Kramer, Davidson, Temple (DNR); Terence Dalton; Teresa Imm; Thor Cutler, Tim Mayers; Tina Grovier (tmgrovier@stoel.com); Todd Durkee; Tony Hopfinger; trmjrl; Tyler Senden; Vicki Irwin; Vinnie Catalano; Walter Featherly; yjrosen@ak.net, Aaron Gluzman; Aaron Sorrell; Ajibola Adeyeye; Alan Dennis; Andrew Cater, Anne Hillman; Bruce Williams; Bruno, Jeff J (DNR); Casey Sullivan; David Lenig; Donna Vukich; Eric Lidji; Erik Opstad; Gary Orr; Smith, Graham O (PCO); Greg Mattson; Hans Schlegel (hans.schlegel@ge.com); Heusser, Heather A (DNR); Holly Pearen; James Rodgers; Jason Bergerson; Jennifer Starck; jill.a.mcleod@conocophillips.com; Jim Magill; Joe Longo; John Martineck; Josh Kindred; Kenneth Luckey; King, Kathleen J (DNR); Laney Vazquez; Lois Epstein; Longan, Sara W (DNR); Marc Kuck, Marcia Hobson; Steele, Marie C (DNR); Matt Armstrong; Matt Gill; Franger, James M (DNR); Morgan, Kirk A (DNR); Pat Galvin; Peter Contreras; Richard Garrard; Robert Province; Ryan Daniel; Sandra Lemke; Pexton, Scott R (DNR); Peterson, Shaun (DNR); Pollard, Susan R (LAW); Talib Syed; Todd, Richard J (LAW); Tostevin, Breck C (LAW); Wayne Wooster, Woolf, Wendy C (DNR); William Hutto; William Van Dyke Subject: Public Notice, Hilcorp Commingling Granite Point Field Attachments: Notice of Public Hearing CO-14-019.pdf Jody J. Colombie Special Staff Assistant Alaska Oil and Gas Conservation Commission 333 West Th Avenue Anchorage, Alaska 99501 Jody. Colombie(a_,alaska.gov Office: (907) 793-1221 Fax: (907) 276-7542 CONFIDEWIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Jody Colombie at 907.793.1221 or iody.colombie@alaska.gov Judy Stanek Landman Hilcorp Alaska, LLC 3800 Centerpoint Dr., Ste. 1400 Anchorage, AK 99503 1L.Q Q Penny Vadla George Vaught, Jr. 399 W. Riverview Ave. Post Office Box 13557 Soldotna, AK 99669-7714 Denver, CO 80201-3557 Bernie Karl CIRI K&K Recycling Inc. Land Department Post Office Box 58055 Post Office Box 93330 Fairbanks, AK 99711 Anchorage, AK 99503 Richard Wagner Gordon Severson Post Office Box 60868 3201 Westmar Cir. Fairbanks, AK 99706 Anchorage, AK 99508-4336 Darwin Waldsmith James Gibbs Post Office Box 39309 Post Office Box 1597 Ninilchik, AK 99639 Soldotna, AK 99669 Jerry Hodgden Hodgden Oil Company 40818t6 St. Golden, CO 80401-2433 North Slope Borough Planning Department Post Office Box 69 Barrow, AK 99723 Jack Hakkila Post Office Box 190083 Anchorage, AK 99519 #1 Hilcorp Alaska, LLC June 17, 2014 Ms. Cathy P. Foerster, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 JUN 18 2014 AOGCC 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone:907-777-8341 Fax:907-777-8580 jstanek@hilcorp.com RE: Request for Approval to Commingle Production Granite Point Field, Middle Kenai Oil and Hemlock Undefined Oil Pools Granite Point Platform Granite Pt St 11-13RD Dear Ms. Forester: Hilcorp Alaska, LLC (Hilcorp), as operator of the South Granite Point Unit and Granite Point Platform hereby requests that a Conservation Order be granted by the Alaska Oil and Gas Conservation Commission to permit the commingling of oil production from the Granite Point Field, Middle Kenai Oil and Hemlock Undefined Oil Pools in the Granite Point State 11-13RD well. Issuance of the requested Order requires an exception to 20 AAC 25.215 (b). Additionally, Hilcorp requests waiver of the requirement to provide complete separation of flow streams from separate pools as specified in 20 AAC 25.210. Background Hilcorp purchased Union Oil Company of California's working interest in Cook Inlet properties and assumed operatorship of the Granite Point Platform, effective January 1, 2012. Hilcorp subsequently acquired ExxonMobil Alaska Production, Inc.'s working interest in the South Granite Point Unit leases and the Granite Point Platform, effective June 1, 2012. Hilcorp currently holds 100% working interest in the Granite Point Platform and associated wells. The Granite Pt St 11-13RD (GP-11-13RD) well was drilled and completed in March 1992 as a gas lift producer in the Hemlock reservoir. The well initially came on production at 1,500 bopd and at a tubing pressure of 1,500 psi with no artificial lift. Since March 1992, this well has recovered approximately 1,030 MBO barrels of oil Production had declined steadily to a rate of 30 bopd at a —60% watercut and a reservoir pressure of 5,300 psi, from an original estimated reservoir pressure of 6,000 psi. The well has been utilizing artificial lift since early Ms Cathy Foerster Alaska Oil and Gas Conservation Commission Granite Pt St 11-13RD Commingling Application June 17, 2014 Page 2 of 4 1993 as a means to produce and is unable to flow without lift assistance. A hydraulic fracture stimulation was performed in December 2013 in order to remove suspected skin damage. The post stimulation rate has stabilized at 50 bopd at 60% water cut. Reserves and Development Strategy Remaining oil reserves from the Hemlock sands are estimated at -164 MBO. These estimates are based solely on GP-11-13RD as it is currently the only oil producing well in the Hemlock sands at Granite Point Field. Further development of the Hemlock sands at Granite Point Field is planned but is not estimated to take place for several years. Any development taking place will help further delineate the sands and will not be targeting areas near the current wellbore. Therefore, it is expected the remaining reserves in this well will not be captured by offset well production Based on offset well performance and the original open hole well log, it is estimated that - 450 MBO of reserves exist in the overlying Middle Kenai sands that remain behind pipe. It is not expected that any development drilling will take place within the core area of the field where GP-11-13RD is located. Planned development is targeted for flank areas of the field which have not yet been developed. Development within the core area of the field is expected to be economically challenged. (See economic consideration section below.) Well Equipment Constraints The GP-11-13RD well is currently completed with a gas lift completion consisting of a single string and packer. Since both the Hemlock and Middle Kenai sands require artificial lift in order to flow, a dual string completion separating flow streams would not be a viable option as a completion strategy. Middle Kenai sands are currently located above the existing packer and cannot be accessed through tubing for completion. The completion would have to be pulled and rerun where the packer would be set above the targeted Middle Kenai sands in order to perforate these sands. Economic Considerations The high cost of drilling operations offshore and the rate expected to be seen from completing the Middle Kenai sands (-80-100 bopd) cannot support an economic case to access these reserves via drilling. Due to the low permeability of the target sands and current well spacing the overall decline rate in the Middle Ms Cathy Foerster Alaska Oil and Gas Conservation Commission Granite Pt St 11-13RD Commingling Application June 17, 2014 Page 3 of 4 Kenai Oil Pool at Granite Point Field is -5 percent. At this decline rate, it is estimated there will be significant reserves left behind at the current estimated end of field life. By completing the Middle Kenai sands through this wellbore we can help bring reserves within field life that would otherwise be stranded. Production Allocation Initially, a production log will be run to calculate the contribution between zones. It will then be compared to well rates prior to comingling to confirm the accuracy of the production log results. If a reasonable match is not found then production from the Hemlock zone will be allocated based on previous oil and decline rates. It is expected that the Middle Kenai sands will not produce any water so all water will be allocated to the Hemlock sands. If a reasonable match is found using the production log, it will be used as the allocation method and will be run every two years. Conclusion In summary, Hilcorp respectfully requests that a Conservation Order be issued to permit the commingling of oil production from the Granite Point Field, Middle Kenai Oil and Hemlock Oil Undefined Pools in the Granite Pt St 11-13RD well. Further, Hilcorp requests waiver of the requirement to provide complete separation of flow streams from the two pools. Without approval to commingle oil from both pools, costs become prohibitive. Hilcorp would temporarily abandon the Hemlock Oil Pool in favor of producing the Middle Kenai Oil Pool and thus reduce the ultimate oil recovery from the Granite Point field. If you require additional information regarding the Granite Pt St 11-13RD well, please contact Mr. Reid Edwards, Reservoir Engineer at 907-777-8421, or you may contact the undersigned at 907-777-8341. Sincerely, Judy Stanek Landman Ms Cathy Foerster Alaska Oil and Gas Conservation Commission Granite Pt St 11-13RD Commingling Application June 17, 2014 Page 4 of 4 Confidential Attachments: 1. Well diagram (existing) 2. Well diagram (proposed) 3. Structure map of Middle Kenai Oil Pool 4. Structure map of Hemlock Undefined Pool 5. Overlay structure map of Middle Kenai Oil Pool and Hemlock Undefined Pool 6. Log of wells GP-11-13RD and GP-50 showing Middle Kenai and Hemlock 7. Historical Production Middle Kenai Oil Pool (Oil — Exponential Decline) 8. Historical Production Hemlock Undefined Pool (Oil — Exponential Decline) 9. Performance curve for GP-11-13RD 10. Decline Curve for GP-11-13RD Granite Point Platform Figure 1.. Well Diagram (Existing) Well #: GP 11-13RD Last Completed: 12/18/2013 Illlrorp .\leeks. LL1: PTD: 191-133 API: 50-733-20026-01 RKB to Hanger = 42.6 TD=11,560ft PBTD ® 11,451ft CASING DETAIL Size (in) WT (lb/ft) Grade Conn ID (in) Top (ft) Btm (ft) 18 Conductor Surf 684 13-3/8 61.0 J-55 12.515 Surf 4,018 9-5/8 47 N-80 8.681 Surf 6,773 9-5/8 53.5 P-110 8.535 6,773 10,060 7 32 P-110 6.094 9,787 11,560 5.919 32 Exp. Liner GII 1 5.271 1 10,978 1 11,451 TUBING DETAIL 3-1/2 9.3 L-80 RTS-8 1 2.992 Surf 10,932 JEWELRY No D(efp)h ID Item 1 326 2.813 SCSSV X-Profile Back Up 2 2,304 2.992 GLM 3 4,164 2.992 GLM 4 5,686 1 2.992 GLM 5 6,856 2.992 GLM 6 7,715 2.992 1 GLM 7 8,324 2.992 GLM 8 8,811 2.992 GLM 9 9,327 2.992 GLM 10 1 9,841 2.992 GLM 11 10,355 2.992 GLM 12 10,839 2.992 GLM 13 10,854 2.813 GXA Sliding Sleeve Non-Elastomeric (opens up / B shifting Tool) 14 10,867 2.992 Chemical Injection Sub 15 10,883 2.992 Hyd Retr Packer, 7" 26-32#, 40K Shear 16 10,925 2.813 EUE X Nipple 17 10,932 2.992 WL Re -Entry Guide PERFORATIONS Zone Top(MD) Btm(MD) Top(TVD) Btm(TVD) Amt SPF Date 11,032' 11,220' 10,904' 11,083' 188' 8 3/12/1992 11,032' 11,102' 10,904' 10,970' 70' 6 2/12/2011 Hemlock 11,245' 11,377' 11,106' 11,232' 132' 8 3/12/1992 11,205 11,215 11,068 11,077' 120' 12 11/16/2013 11,205 1 11,215 11,068 1 11,077' 60' 6 11/27/2013 Updated by JLL 01/17/14 Figure 2 Granite Point Platform PROPOSED Well#: GP11-13RD Last Completed: 12/18/2013 u��nnn 1iu.tu. �,i,c PTD: 191-133 API: 50-733-20026-01 RKB to Hanger = 42-6 13 Mr t-7 4 5 6 7 8 X 10 11 9 - Expiner 10,978-to 11.451' A" TD=11,560ft PBTD ® 11,451ft CASING DETAIL Size (in) WT (Ib/ft) Grade Conn ID (in) Top (ft) Btm (ft) 18 Conductor Surf 684 13-3/8 61.0 J-55 12.515 Surf 4,018 9-5/8 47 N-80 8.681 Surf 6,773 9-5/8 53.5 P-110 8.535 6,773 10,060 7 32 P-110 6.094 9,787 11,560 5.919 32 Exp. Liner f Gil 5.271 10A78 11,451 TUBING DETAIL ?-1/2 9.3 L-80 RTS-8 1 2.992 ±8,453' JEWELRY No D(efp,h ID Item 1 326 2.813 SCSSV X-Profile Back Up 2 ±2,304 2.992 GLM 3 ±4,164 2.992 GLM 4 ±5,686 2.992 GLM 5 ±6,856 2.992 GLM 6 ±7,715 2.992 GLM 7 ±8,324 2.992 GLM 8 ±8,394' 2.813 Sliding Sleeve Non-Elastomeric (opens up / B shifting Tool) 9 ±8,404' 2.992 Packer 10 ±8,446' 2.813 X Nipple 11 ±8,453' 1 2.992 WL Re -Entry Guide Perforation Details Zone Top(MD) Btm(MD) Top)TVD Btm)TVD Amt SPF Date ±8,553' ±8,585' ±8,471' ±8,503' ±32' Future ±8,648' ±8,685' ±8,565' ±8,602' ±37' Future ±8,72'.1' ±8,738' ±8,637' ±8,654' ±17' Future ±8,877' ±8,901' ±8,792' ±8,816' ±24' Future ±8,93.9' ±8,997' ±8,833' ±8,911' ±78' Future ±9,03.3' ±9,040' ±8,926' ±8,953' ±27' Future ±9,306' ±9,331' ±9,216' ±9,241' ±25' Future ±9,4?19' ±9,466' ±9,348' ±9,374' ±27' Future ±9,475' ±9,485' ±9,383' ±9,393' ±10' Future ±9,578' ±9,591' ±9,485' ±9,498' ±13' Future ±9,63.0' ±9,635' ±9,516' ±9,541' ±25' Future Tyonek ±9 7] 1' ±9,720' ±9,616' ±9,625' ±9' Future ±9,744' ±9,756' ±9,649' ±9,661' ±12' Future ±9,786' ±9,797' ±9,690' ±9,701' ±11' Future ±9,836' ±9,855' ±9,740' ±9,758' ±19' Future ±9,945' ±9,989' ±9,847' ±9,891' ±44' Future ±10,188' ±10,195' ±10,088' ±10,095' ±7' Future ±10,211' ±10,228' ±10,111' ±10,128' ±17' Future ±10,319' ±10,327' ±10,218' ±10,226' ±8' Future ±10,626' ±10,655' ±10,517' ±10,545'W12O2 Future ±10,732' ±10,750' ±10,619' ±10,636'Future ±10,802' ±10,807' ±10,686' ±10,690'Future 11,032' 11,220' 10,904' 11,083' 3/12/1992 11,032' 11,102' 10,904' 10,970' 2/12/2011 Hemlock 11,245' 11,106' 11,232' 3/12/1992 11,205 ;11,377' 11,215 11,068 11,077' 11/16/2013 11,205 11,215 11,068 11,077' 60' 6 11/27/2013 Updated by JLL 06/16/14 FIGURE 3 HELD CONFIDENTIAL IN SECURE STORAGE FIGURE 4 HELD CONFIDENTIAL IN SECURE STORAGE FIGURE 5 HELD CONFIDENTIAL IN SECURE STORAGE 0 W w a••+ O m N N 06 00 co r-i r—I U Q Q � N u U U ca Q m L � z v m Q i v U U CL -a O v C' N SJ 0 c � v z G o � O w w a � �- _ y y a M O tD O N O 0) CD CD C o O z 3 a Z W W J a W J t7l Z c w a� W Z Ln to ~ m z O cn. W y o � 7 c E Cm EN U O ii U (P/qls) a;ea Je;eM d0 (P/q4s) a;ea 110 d0 GOR (scf/bbl) 0 0 P W N M N P t0 tp Op Water Inj Rate (stb/d) I,- N t+1 N 1- M M N 1�- IN M N h N m tV bi low T- FIGURE 9 HELD CONFIDENTIAL IN SECURE STORAGE FIGURE 10 HELD CONFIDENTIAL IN SECURE STORAGE